From time to time, importers will be faced with the decision of whether to switch from sea freight to air freight – often when they have high-value consignments and/or need to meet tight deadlines.
Sometimes there is the need to weigh up not just short-term contractual obligations for this particular order, but also the risk of losing a client’s business completely.
The decision to make the switch from sea freight to air freight will depend on the urgency and value of the order in question. If it’s not on time, you could end up with empty shelves and unhappy customers. But if freight costs skyrocket by moving a shipment quickly, it can take a giant bite out of your margin.
Sea freight is the preferred option for cost-effective transportation of non-urgent, large, or heavy goods. When your products have predictable sales patterns and you can forecast needs well in advance, the longer lead times of a sea journey are less of a concern.
Sea journeys are most economical at the level of container-load volumes, where the cost of airfreight would be prohibitive. When budget is paramount, sea freight’s lower costs outweigh the benefits of faster transport by air. As an additional consideration, more and more traders are taking into account the environmental impact – sea freight generally has a lower carbon footprint than air freight.
When Air Freight Makes More Sense
There are certain commodities that are always more suited to air shipment and the choice is a no-brainer right from the outset. These are items with high value-to-weight ratios where the speed and potentially enhanced security offsets the higher cost of air freight.
Here we are talking about the more valuable goods, perishables, and time-sensitive shipments: fresh produce, cut flowers, or other items with a limited shelf life need to reach their destination quickly. Also, for smaller/lighter shipments where the minimum charges for sea freight make it uneconomical, air freight might be more cost-effective.
Meeting a crucial deadline, too, with a product launch or a critical manufacturing component requires the fast delivery that only air freight can provide.
However, the unexpected challenge we are referring to is when an importer has originally placed an order for shipment by sea, and then either by delays from the overseas supplier, or by deadlines here in Australia being brought forward, the shipping time suddenly becomes critical.
When faced with the reality that sea freight is not going to meet expectations for a particular order, choosing the shift to air freight involves a careful balancing act between speed, cost, and predictability. That’s when you must carefully weigh up the additional costs of air cargo against the potential losses to be incurred in not meeting commitments to your clients.
Colless Young offers you both air freight and sea freight and provides professional advice when you need to decide which is the best option for your particular shipment. Ask us for rates and schedule comparisons when you place your order. Call Andrew, Tel: +61 7 3890 0800 email enq@collessyoung.com.au.
